Looking for the best place to invest in Australia? If you want your money to go further, investing in Australia in 2024 is your best bet. Having cash won’t do much, but investing it in properties can bring you tons of profit.
However, investment comes with risks, only if you don’t know where to invest. This is why people spend months checking for the best places before investing.
Despite the extraordinary growth in land prices, there are a few things to keep in mind before becoming a property developer. Check the place, what future value it holds, and whether it will catch the eyes of high-end investors.
With that all in mind, here are the top six picks for the best place to invest in Australia in 2024.
What to check before investing in Australian property
1. Location
The first thing to consider before investing in property is the location. You can speculate about how that land will increase its value in the coming years. A meeting with professional property investors can help you in this case.
Furthermore, check which properties are being advertised the most and go for them. Another factor is to check which company is taking care of the construction. If it is a famous company, the chances of property value increasing are high.
You also want to decide on the demographic you’re attracting. If you’re interested in renting out a vacation home for instance, you can consider investing in a ski resort in one of the cold places in Australia or a beach house along the coast. Again, speaking to a professional can help you make this decision.
2. Return on investment
Companies often begin the practice of collecting payments from customers in exchange for a periodic benefit. Even if no buildings are constructed on that land, the investor will get a return. In such cases, check the rising interest rates of nearby properties and see which offers the best.
3. Follow the 1% rule
A simple way to get a valuable property is to follow the 1% rule. This states that the monthly rent you get from the property must be equal to or more than the property’s purchase price.
4. Rental growth
Every state in Australia has different laws regarding owning property. If you want to put your property up for rent, always check what rental growth it will bring in a couple of years. Also, raise the rent as the house prices in the property markets increase.
In comparison, rent is much better than capital growth as you can get back the market value of your property in less time.
Best place to invest in Australia
For investment, here are the six best places in Australia providing a solid return.
Hobart apartments
Hobart is Australia’s second oldest capital, with many potential places for investment. Apartments in Hobart are getting famous in investors’ eyes because they are relatively cheaper than apartments in the capital.
Hobart’s median price per unit is less than $350,000, but its rental demand is strong. Since it is a capital, many people would like to move here and settle down, giving you a lot of advantages to getting rental yield.
Melbourne apartments
Melbourne has the highest rental demand after Sydney because it is home to wealthy people who can afford to provide the best amenities. The investment property in this area has a maiden price of almost $750,000, whereas one apartment with a single bedroom can cost up to $450,000.
The expected rental price of such apartments starts from $450 and can go up to $800, while the median price remains the same.
Sydney apartments
Investing in a Sydney apartment is a safe bet if you have a large sum of money to spare and no desire to lose any of it. Even though it’s not the country’s official capital, this is the most visited spot in Australia.
It’s also a major hub for the country’s financial and commercial sectors. You can get a lot of interest in your apartment if you advertise it for rent in the $800 per month range.
4. Canberra apartments
Since it is the nation’s capital, Canberra boasts a more stable rental market than any other Australian city. In Australia’s property market, Canberra has a special place, with the biggest investors looking to grab a place there.
If a property is available for sale or rent, you’ll see it disappear in minutes. You can easily expect an average rental yield of 5.7% in Canberra, with a median house price of $440,000. Property values in this area can only go up, so you’ll never have to worry about a loss.
5. Perth apartments
The government of Perth invested heavily in reviving the city’s property market, and the city’s malls and rail projects are now easily accessible. This area is perfect for those who would like to live a minimalistic affordable lifestyle.
The average monthly rental income in Perth is $560. However, depending on amenities such as proximity to work and shopping, this can rise to $500 per week.
6. Newcastle apartments
Thanks to heavy investment from both the government and private businesses, Newcastle now boasts a thriving, self-sufficient economy that makes it a fantastic destination for tourists.
It is one of the fastest-growing towns in NSW, with an annual return of 7.7%, making it one of the best places to buy an investment property in NSW.
How to spot suburbs with higher potential growth
Before investing in property, spotting areas with faster and long-term growth should be on your list, and here are some things to watch out for:
- Look for areas with a growing population, as many companies, even the government, will start making plans for those areas. With population growth, the demand for property investment will increase.
- A local economy with industries and active employees should be your next target. People prefer to live in the city where they work..
- Check where the government has plans to improve the infrastructure and provide better transportation means. These areas are the most popular to get higher investment opportunities.
- Areas with rising annual yields indicate a high demand for rental property.
Suggested Reading: Check out our article on the Best Suburb to Invest in Every Capital City in Australia as well as Worst Places to Invest in Real Estate to find out where you might want to make your next investment.
Final words: the best place to invest in Australia in 2024
Locating a property for investment in Australia is not a difficult task if you know what to look for.
Watch out for factors that indicate a demand for rental properties in any area and invest there.
Here are the top six Australian real estate markets to invest in for 2024, so you can cash in at year’s end and beyond.
